A Quality Characteristic Has a Manufacturing Specification (In Cm) of 0.20

Multiple Choice

A quality characteristic has a manufacturing specification (in cm) of 0.20 ± 0.05. Historical data indicate that if the quality characteristic takes on values larger than 0.25 cm or smaller than 0.15 cm, the product fails and a cost of $75 is incurred. Based on this data, answer the question below. The Taguchi loss function is _____.

A) L(x) = 75 (x - 0.05) ²
B) L(x) = 30,000 (x - 0.20) ²
C) L(x) = 30,000 (0.15 − 0.25) ²
D) L(x) = 1,500 (0.15 − 0.25) ²